Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to the same quarter last year, while declining from the prior quarter. Revenue remained stable across both comparison periods.
- Revenue was stable, but operating cash flow improved significantly from a negative level a year ago while weakening from the prior quarter. Capital expenditure was slightly lower than both comparison periods, and the resulting free cash flow margin turned positive year-over-year but narrowed sequentially.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Compared to the same quarter a year ago, operating cash flow and free cash flow improved from negative to positive, and the margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$349.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$574.0M
Cash generated by operations before capital spending.
CapEx
$225.0M
Capital spending and related asset purchases.
FCF margin
5.8%
The share of revenue converted into free cash flow.
TTM FCF yield
2.5%
TTM FCF divided by market capitalization.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2025-06-30 | $6.3B | -$954.0M | $208.0M | -$1.2B | -18.3% |
| 2025-09-30 | $6.5B | $1.8B | $218.0M | $1.5B | 23.6% |
| 2025-12-31 | $6.1B | $1.6B | $248.0M | $1.3B | 21.8% |
| 2026-03-31 | $6.0B | $574.0M | $225.0M | $349.0M | 5.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 53.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Recovery
Operating cash flow rebounded from a deficit in the year-ago quarter to a positive level, driving free cash flow into positive territory even with stable revenue and slightly lower capital expenditure.
The year-over-year improvement in operating cash flow was the primary factor behind free cash flow turning positive this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, but operating cash flow improved significantly from a negative level a year ago while weakening from the prior quarter. Capital expenditure was slightly lower than both comparison periods, and the resulting free cash flow margin turned positive year-over-year but narrowed sequentially.
Compared to the prior quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Compared to the same quarter a year ago, operating cash flow and free cash flow improved from negative to positive, and the margin also improved.
Monitor operating cash flow sustainability given its sequential decline while revenue remains stable.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $83.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.5% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.